Keep tasks of making a sale, negotiating a price separate

by Cathy Atkins

August 25,2007

The quarterback is down and ready. He catches the ball, backs up three to four steps, scans the field, fakes a pass and hands the ball to a running back. The running back takes off down the field just as a defensive lineman stands up, throws his arms up in the air and yells at the referee, "Hey, ref, that's not fair. He deceived us."

In the game of business, ordinarily honest and forthright individuals occasionally resort to tactics in the context of a game. In the game of sales, the gambits employed run a two-way street. For example, prospects may tell a salesperson they're not interested when they really are or conversely may lead that salesperson to believe that interest exists where in fact it does not. Untrained salespeople unwittingly encourage the use of games in sales when they quickly drop their price or cut a deal to get business. Tactics that are otherwise not an accepted part of daily communication are, in business and sales, an expected part of the negotiation process.

Selling is defined as getting your price on your terms and conditions. Negotiating is modifying your price or terms in some way to get the agreement. Effective negotiators are first effective sellers. Negotiation skills are not designed to replace selling skills. Focus first on selling professionally and effectively to thereby minimize the need for negotiation. You'll find that many negotiations, often turned into wrestling matches because of poor sales ability, can be avoided. Many a weak salesperson has felt and responded to pressure to cut a price for a sale and called it negotiation. That's not negotiation. That's a poor sales effort.

In a recent seminar, a group of buyers were asked why salespeople believe that price is the bottom line in negotiation. One buyer enthusiastically responded, "Because that's what I want them to think!" Price often isn't the real issue. If I have a wet rag that, upon twisting, drips water … what will I do? The answer is squeeze harder. The more drops I get, the tighter I continue to squeeze. There's no incentive to stop squeezing, because my incentive comes when I get drips. It works great for drying out a wet towel, but it is a terrible foundation on which to build a business. One salesperson believes that the only way to get business is to drop the price and another believes differently. Both methods may result in sales, but only one produces profitability for the long-term success of the company.

Checking yourself against a few common mistakes can make you, and your prospective clients, happier and healthier. Those "seven deadly sins" in sales and negotiation are:

1. Talking too much.
2. Losing control of your emotions.
3. Entering into a selling situation, or a negotiation, unprepared.
4. Thinking that money is the real issue.
5. Making monetary concessions.
6. Making unilateral concessions.
7. Weak pre-selling or pre-negotiating position.

In sales and in negotiation, information is power. Information means preparation, and preparation is key. Human nature says that we have two responses to pressure situations: fight or flight. You are in front of a potential customer, and the customer flinches. Your reaction can either be your saving grace or your downfall. Automatically offering a "better deal" sets up a bad precedent for a future relationship. Most of the time, you're dealing with a fairly unsophisticated buyer. Yours are not buyers that have been to schools on negotiation, and are commissioned on how far off your price they can get you to land. Most buyers will smile and say something like, "Well, you know I had to at least try." They then have the conviction that you gave them your best offer the first time. You sell with integrity, hold your ground and move forward with a win-win.

Everybody should walk away from the selling or negotiating table feeling good about the end result. Even if that end result is no deal. Remember that the first concession you make is always in your own head. If you find yourself cutting price, check your belief system—or your business model. For those instances when you are dealing with a sophisticated and savvy buyer, it makes sense to understand the rules of effective negotiations so that you can be prepared to find the win-win solution.

After all, you don't get what you want in life; you get what you negotiate.

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